Sunshine warehouse almost triples price in a decade
An old warehouse in the heart of Sunshine has sold for a whopping $2.35 million to a local investor who also owns the property next door.
Three local businesspeople battled for the property and pushed the price $350,000 above reserve on February 28.
The selling price gained $1,497,500 in less than 10 years from the $852,500 the owner paid in 2010, CoreLogic records show.
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The 1950s building with a fibrocement roof is on a 950sqm block at 14 Hertford Rd.
Douglas Kay Real Estate’s Doug Kay says the property sold well beyond expectations because it is in an activity zone with scope for commercial or residential development.
14 Hertford Rd, Sunshine was a golden opportunity.
“It is rare to find a vacant building in this area with potential to build a multistorey building,” Kay says.
“Prices here have shot through the roof.”
The warehouse generated strong local interest, particularly from neighbouring businesses that include Sunshine Plaza and a law firm.
Kay says the buyer owns multiple properties in the area, including the property next door at 16-18 Hertford Rd that was leased to the Department of Housing.
The property is in an activity zone in the heart of the bustling suburb.
“He plans to land-bank the property at this stage and hopes to develop both properties in the future,” he said.
The warehouse is clean and waterproof and included a planning permit for renovation.
“It has changed a number of times over the years and was a small supermarket at one stage,” Kay says.
The seller, a local businessperson, was moving to a larger warehouse and showroom complex on the Maroondah Highway in Lilydale.
The 700sqm warehouse came with a planning permit for renovation.
Kay describes Sunshine’s property market as buoyant with high demand for shops, offices and warehouses.
“The new transport infrastructure … has put Sunshine on the map,” Kay says.
“This is a big drawcard that has lifted prices dramatically.”
The median house price in Sunshine soared 41.6% to $741,750 in the three years to November. That figure has jumped 73.9% in five years.
This article from Leader Newspapers originally appeared as “Western suburbs warehouse gains $1.5m in 10 years”.
